Developer gets stay in Country Garden Danga Bay condo defects suit

The developer of the Country Garden Danga Bay condominium project secured a stay of proceedings in a high-profile lawsuit over alleged defects at the development, as the case proceeds to an appeal. The appeal questions whether individual parcel owners and a joint management body have the legal authority to sue after the establishment of a management corporation.

Judicial Commissioner Budiman Lutfi Mohamed granted the stay during a hearing at the Johor High Court. The lawsuit was initiated in 2023 by the Joint Management Body (JMB) of Royal Strand & Lovell high-rise residential towers within the Country Garden Danga Bay development, against the developer over alleged defects in the common property.

In May, three individual owners from Singapore were added as co-plaintiffs following a High Court order. Country Garden then appealed the joinder order, challenging the standing and capacity of both the JMB and individual owners under the Strata Management Act 2013. The court stayed the trial, citing a critical issue that could significantly impact the proceedings.

Granting the stay is deemed necessary to avoid wasting judicial time, witness attendance, expert preparation, and litigation costs. The dispute seeks not only monetary compensation but also the appointment of an independent engineer and mandatory rectification works to address the alleged defects. Allowing the trial before the appeal decision might lead to futile work that cannot be easily undone.

Despite the individual owners' legitimate interest in resolving the dispute promptly, the court acknowledged that physical rectification works carried out before the appeal ruling may not be easily reversible.